Indo-Australia trade deal boosts engineering exports despite import surge

KOLKATA: One year after the India-Australia Economic and Trade Cooperation Agreement (ETCA) came into effect, engineering exports to Australia reached USD 944 million in April-November 2023-24, a 3 per cent increase.

However, imports from Australia also saw a significant 30 per cent upswing during the same period. India’s engineering imports from Australia reached USD 355.02 million during April to October 2023-24.

Despite the sharp surge in imports, EEPC India chairman Arun K Garodia remains optimistic, pointing to a positive engineering trade balance of USD 471 million between April and October 2023-24. This, he says, underscores the resilience and competitiveness of India’s engineering sector.

“While imports have increased more than exports in the short term of the new trade deal, we remain optimistic about the long-term benefits for the engineering sector. We expect a surge in exports to Australia, especially with their recent efforts to curb domestic industries and increased reliance on imports,” Garodia said..

He added this could attract them to other countries like India under the free trade agreement, particularly as they become accustomed to importing from diverse sources with the “China plus one” strategy.